S Exercise 9-14 (Algo) Conventional retail method [LO9-4] Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Required: Cost Retail $ 270,000 629,000 16,000 $ 288,000 904,000 28,000 4,800 880,000 Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign. Beginning inventory Purchases Freight-in Net markups Net markdowns Goods available for sale Cost-to-retail percentage Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Cost Retail Cost-to-Retail Ratio $ 270,000 $ 288,000 288,000 270,000 288,000 % $ 288,000

S Exercise 9-14 (Algo) Conventional retail method [LO9-4] Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Beginning inventory Purchases Freight-in Net markups Net markdowns Net sales Required: Cost Retail $ 270,000 629,000 16,000 $ 288,000 904,000 28,000 4,800 880,000 Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign. Beginning inventory Purchases Freight-in Net markups Net markdowns Goods available for sale Cost-to-retail percentage Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Cost Retail Cost-to-Retail Ratio $ 270,000 $ 288,000 288,000 270,000 288,000 % $ 288,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.12E: Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete...

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Inventory Valuation Specific identification method Weighted average cost method FIFO method LIFO method LIFO liquidation LIFO conformity rule LIFO reserve Replacement cost Inventory profit Lower-of-cost-or-market (LCM) rule Inventory turnover ratio Number of days sales in inventory Moving average (Appendix) The name given to an average cost method when a weighted average cost assumption is used with a perpetual inventory system. An inventory costing method that assigns the same unit cost to all units available for sale during the period. A conservative inventory valuation approach that is an attempt to anticipate declines in the value of inventory before its actual sale. An inventory costing method that assigns the most recent costs to ending inventory. The current cost of a unit of inventory. An inventory costing method that assigns the most recent costs to cost of goods sold. A measure of how long it takes to sell inventory. The IRS requirement that when LIFO is used on a tax return, it must also be used in reporting income to stockholders. An inventory costing method that relies on matching unit costs with the actual units sold. The portion of the gross profit that results from holding inventory during a period of rising prices. The result of selling more units than are purchased during the period, which can have negative tax consequences if a company is using LIFO. The excess of the value of a companys inventory stated at FIFO over the value stated at LIFO. A measure of the number of times inventory is sold during the period.
Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements (in millions): a. Determine for bom companies (1) the inventory turnover and (2) the days' sales in inventory. Round to one decimal place. b. Compare and interpret the inventory metrics computed in (a).
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Exercise 9-14 (Algo) Conventional retail method (LO9-3) Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost $230, 000 $320, 000 570,880 9,600 Retail Merchandise Inventory, January 1, 2021 Purchases Freight-in Net narkups Net markdowns Net sales 880, 000 28,000 12,000 840, 000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.)
Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5] [The following information applies to the questions displayed below.] On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 Problem 9-13 (Algo) Part 1 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ $ $ 2024 2024 Cost Retail $ 150,500 $ 215,000 640,000 852,000 2,700 6,800 5,650 474,400 $ 354,756 $ (579,600) $ 1.00 1.25 1.25 2025 Required: 1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method. Note: Round your cost-to-retail percentage calculation…
SP9: Supplemental Retail Inventory Method problem ABC periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold at Year End. Use the following information to answer the questions below: Cost Retail Beginning inventory Purchases Purchase returns Transfer in Net markups Net markdowns 76 Sates Sales Returns Sales Discount 99200 310000 10000 5280 160000 480000 20000 10000 10000 8000 440,000 6000 5000 Estimate Ending Inventory and COGS using the Conventional Retail Method Estimate Ending Inventory and COGS using the LIFO Retail Method Estimate Ending Inventory and COGS using the DV LIFO Retail Method - Assume that retail prices increased 10% (from 1.00 to 1.1) from base year (previous year end) to current year end
Webster Company uses the average retail method of inventory valuation. Following are the information available: Retail P 60,000 220,000 20,000 40,000 180,000 Beginning inventory Purchases Cost P 23,000 120,000 Net markups Net markdowns Sales revenue What is the estimated cost of ending inventory? P80,000 P48,000 а. b. с. P44,000 d. P38,133
Exercise 9-14 (Algo) Conventional retail method [LO9-4] Colonial Corporation uses the retail method to value its inventory. The following information is available for the year: Cost Beginning inventory $ 340,000 Purchases 669,000 23,000 Freight-in Net markups Net markdowns Net sales Beginning inventory Required: Determine ending inventory and cost of goods sold by applying the conventional retail method using the information provided. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign. Purchases Freight-in Net markups Net markdowns Goods available for sale Cost-to-retail percentage Net sales Retail $295,000 960,000 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 35,000 5,500 950,000 Cost $ 340,000 $ Retail 295,000 Cost-to-Retail Ration %
PROBLEM G (AVERAGE COST RETAIL INVENTORY METHOD) Fainthearted Company provided the following information for the current year : COST RETAIL Beginning inventory Purchases Additional markup Available for sale 750,000 4,150,000 1,000,000 5,800,000 200,000 4,900,000 7,000,000 Sales for the year totaled P5,500,000. Markdown amounted to P100,000. Under the average cost approach in applying the retail method, what is the estimated cost of inventory?
Required Information Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5] [The following information applies to the questions displayed below.] On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 25% discount) Normal spoilage Price Index: January 1, 2021 December 31, 2021 December 31, 2022 Problem 9-13 (Algo) Part 2 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2021 Average Cost Retail Method Cost Retail $ 96,000 $160,000 520,000 883,000 2,700 4,000 3,000 1.00 1.25 1.25 6,000 4,000 670,000 12,000 3,000 2022 Cost Retail $600,000 $950,000 2,400 5,750 8,000 Required: 2. Estimate the 2021 ending inventory and cost of goods sold using the average cost…
Required information Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5] [The following information applies to the questions displayed below.] On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage Price Index: January 1, 2021 December 31, 2021 December 31, 2022 Problem 9-13 (Algo) Part 3 X Answer is complete but not entirely correct. Conventional Retail Method Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ $ $ 2021 950,400 X 725,191 X 725,191 x Cost Retail $105,400 $170,000 430,000 622,000 4,000 2,900 6,200 1.00 1.04 1.20 5,150 4,150 500,000 14,400 1,900 Cost 2022 Required: 3. Estimate the 2021 ending inventory and…
Problem 9-10 (Algo) Dollar-value LIFO retail method [LO9-5] Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the records indicate the following data: Beginning inventory Purchases. Freight-in on purchases Purchase returns Net markups Net markdowns Net sales ($ in 0005) Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold) Cost $ 105 833 40 1 Retail $ 175 1,097 ($ in 000s) 3 م م 5 9 Required: Assuming the price level increased from 1.00 at January 1 to 1.60 at December 31, 2024, use the dollar-value LIFO retail method to approximate cost of ending inventory and cost of goods sold. Note: Round your intermediate and final answers to the nearest whole dollar. Enter your answers in thousands. 926